While working towards finding and engaging more potential customers may seem like the way to high revenue, the best way to boost profits easily is to target the customers you already have. Trying to entice and win over potential and new customers can take a lot of time, research, and work on your part, which can cost you in the end. For Entrepreneurs says that upselling can generate up to 95% of your revenue! So, we think tapping into your existing customer base is a great idea, and we are going to tell you why and how!
Upselling is marketing more expensive, upgraded, or premium products to those who already purchased the original product from you. Think about the phone apps you use. If you like the lite version, you may want to upgrade to get more perks. Your existing customer base already has the base of a trusting relationship with you, so why not advertise newer and better products to them?
You can begin the upselling process right from the get go, such as displaying your recommendations at the bottom of similar products or upgrades, or having those recommendations appear along the side of the screen while they check out. Afterwards, you can send personalized emails showing the new and improved products you have.
You can continue to build on the relationships you have starting with your current customers. Show customers that the upsell products you have will be extra beneficial and a good value to them. It will most likely end in a profit with very little effort on your part.
Cross-selling is a bit different from upselling. Instead of promoting an upgrade or improved feature on a product that a customer already has, you show products that may be completely different or complimentary to what they bought. A great example of cross-selling takes place at a fast food place. You may order a burger but they may suggest fries or a drink to go along with it.
You can cross-sell by becoming familiar with the customers wants and needs by asking questions. Get to know them and show that you have their best interests at heart. Since you have already built a trusting relationship with them, cross-selling will be more successful. Customers who are highly engaged are more likely to purchase from you than those who have little engagement with you.
The Benefits of Both
Both Upselling and Cross-selling can be beneficial to your business, but you need to know which one is the right fit for your customer. That’s why it’s so important to engage your customers and be truly understanding of what they are looking for. While a survey at econsultancy showed that upselling is 20x more profitable than cross-selling, always keep both in mind and present the right marketing tool at the right time.
You can see using the right marketing tools can increase your profitability by leaps and bounds with your existing customer base. If you would like to know how your business can begin using this amazing marketing technique, contact our expert staff today!